Supplemental Financial and Operating Information March 31 ......Pennsylvania Real Estate Investment...

Exhibit 99.1

Supplemental Financial and Operating Information

March 31, 2020

www.preit.com

NYSE: PEI

NYSE: PEIPRB, PEIPRC, PEIPRD

Pennsylvania Real Estate Investment TrustSupplemental Financial and Operating Information

March 31, 2020

Table of ContentsIntroduction

Company Information 1

Earnings Release 2

Changes in Funds from Operations for the Three Months March 31, 2020 6

Market Capitalization and Capital Resources 7

Operating Results

Statements of Operations – Three Months Ended March 31, 2020 and 2019 8

Computation of Earnings Per Share 9

Reconciliation of Net Operating Income and EBITDAre – Three Months Ended March 31, 2020 and 2019 10

Reconciliation of Net Income (GAAP Measure) to Net Operating Income from Consolidated Properties (Non-GAAP Measure) -Three Months Ended March 31, 2020 and 2019 11

Reconciliation of Equity in Income of Partnerships to Net Operating Income from Equity Method Investments, at Ownership Share(Non-GAAP Measure) - Three Months Ended March 31, 2020 and 2019 12

Reconciliation of Funds From Operations and Funds Available for Distribution – Three Months Ended March 31, 2020 and 2019 13

Condensed Consolidated Balance Sheet 15

Assets and Liabilities - Equity Method Investments, at Ownership Share 16

Operating Statistics

Leasing Activity Summary – Three Months Ended March 31, 2020 17

Summarized Sales and Rent Per Square Foot and Occupancy Percentages 18

Mall Occupancy Percentage and Sales Per Square Foot 19

Top Twenty Tenants 20

Lease Expirations 21

Property Information 22

Balance Sheet

Investment in Real Estate - Consolidated Properties 24

Investment in Real Estate - Equity Method Investments at Ownership Share 25

Anchor Replacement Summary 26

Property Redevelopment Table 27

Capital Expenditures – Three Months Ended March 31, 2020 28

Debt Analysis 29

Debt Schedule 31

Selected Debt Ratios 32

Forward Looking Statements 33

Definitions 34

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Pennsylvania Real Estate Investment TrustCompany Information

Background

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT’srobust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarilyin the densely-populated eastern U.S. with concentrations in the mid-Atlantic’s top MSAs. PREIT is focused on enhancing the quality ofits portfolio through redevelopment, anchor repositioning, diversifying its tenant mix and densifying properties by adding a mix of uses. Since2012, the Company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capitalexpenditures. The portfolio consists of 26 retail properties, 25 of which are operating properties and one is a development property. The 25operating retail properties have a total of 20.3 million square feet and include 21 shopping malls and four other retail properties.

If you would like to learn more about PREIT or participate in our quarterly earnings conference call, please visit preit.com or contact:

Heather CrowellEVP, Strategy and CommunicationsOne Commerce Square2005 Market Street, Suite 1000Philadelphia, PA 19103

Telephone: (215) 875-0735Fax: (215) 546-2504Email: [email protected]

Research Coverage

Company Analyst Phone NumberCiti Investment Research Michael Bilerman

Christy McElroy(212) 816-1383(212) 816-6981

Goldman Sachs & Co. LLC Caitlin Burrows (212) 902-4736JP Morgan Michael W. Mueller (212) 622-6689Stifel Nicolaus Simon Yarmak (443) 224-1346SunTrust Robinson Humphrey Ki Bin Kim (212) 303-4124

Press release announcements are available on the Company's website at www.preit.com.

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CONTACT: AT THE COMPANYMario VentrescaEVP & CFO(215) 875-0703

Heather CrowellEVP, Strategy and Communications(215) [email protected]

PREIT Reports First Quarter 2020 Results and Business Update

Core Mall NOI-Weighted Sales per square foot Reached $551 through FebruaryAverage Renewal Spreads for Wholly-Owned Properties were 4.5%

Total Leased Space Stable at 94.0%Progressing with Mall Re-openings

Philadelphia, May 21, 2020 - PREIT (NYSE: PEI) today reported results for the three months ended March 31, 2020. A description ofeach non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located in the tablesaccompanying this release.

Three Months EndedMarch 31,

(per share amounts) 2020 2019Net loss - basic and diluted $ (0.26) $ (0.30)FFO $ 0.14 $ 0.17FFO, as adjusted $ 0.14 $ 0.26FFO from assets sold in 2019 $ - $ (0.01)FFO, as adjusted for assets sold $ 0.14 $ 0.25

“As we slowly emerge from an unprecedented environment, we are focused on ensuring the safety and well-being of our associatesand communities while enhancing near-term liquidity with a laser-focus on improving our balance sheet to position PREIT for long-term success,” said Joseph F. Coradino, Chairman and CEO of PREIT. “The PREIT team has been resilient and courageous as wenavigate this challenging environment. We have pivoted quickly, making difficult decisions and focusing our efforts on supportingour communities of tenants, shoppers, retail employees and our staff.”

Coradino added, “PREIT was among the first companies in our sector to embark on a proactive effort to improve our portfoliothrough asset sales and anchor repositioning and redevelopment, completing the program ahead of industry peers and in advanceof the COVID-19 pandemic. We believe our properties are well-positioned with mass-market offerings appealing to a value-focusedshopper. These properties, with prime locations in their respective markets, are dominant retail hubs and we believe they willultimately gain market share as they re-open.”

• Same Store NOI, excluding lease termination revenue, decreased 9.6% for the three months ended March 31, 2020compared to March 31, 2019.

• The quarter was impacted by a decrease in revenue of $5.6 million primarily resulting from bankruptcies andrelated store closings, an increase in credit losses for challenged tenants prior to the COVID-19 pandemic as well asdecreased percentage sales revenue resulting from mall closures related to the COVID-19 pandemic. This waspartially offset by incremental revenues from anchor replacements and other leasing activity of $0.7 million in thequarter.

• Same Store NOI, excluding lease termination revenue, decreased 5% through February, in line with priorexpectations.

• NOI-weighted sales at our Core Malls increased to $551 per square foot. Core Mall sales per square foot reached $542, a4.8% increase over the prior year. Average comparable sales per square foot at our top six properties rose 4.8% over theprior year to $651 with two properties generating sales over $700 per square foot. Sales data is for the trailing twelve

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months ended February 29, 2020, the last full month of operations, for comparability purposes in light of the widespreadCOVID-19 related mall closures in March 2020.

Core Mall total occupancy was 92.9%, a decrease of 180 basis points compared to March 31, 2019. Core Mall non-anchoroccupancy declined by only 120 basis points from last year despite the impact from bankruptcies and chain liquidations thatresulted in 71 store closures for an aggregate 274,000 square feet during the year ended December 31, 2019.

Non-anchor Leased space, at 92.0%, exceeds occupied space by 170 basis points when factoring in executed new leasesslated for future occupancy, excluding Fashion District Philadelphia.

• Average renewal spreads for the quarter in our wholly-owned portfolio reflected a 5.2% increase for spaces less than 10,000square feet and 4.5% overall. Average renewal spreads for the entire portfolio were negative 1.6% for the quarter whenjoint venture properties are included.

As part of the Company’s plan to improve liquidity during the COVID-19 crisis, we have initiated certain corporate actionsincluding, but not limited to: staff furloughs, reducing the common dividend from $0.21 per share to $0.02 per share, areduction in forecast capital expenditures of approximately $25.0 million, a reduction in forecast corporate G&A of $3.1million, reduced property operating expenses during the closure period, achieved deferral on approximately $11.6 millionin real estate tax payments and received forbearance on several mortgage payments.

The Company continues to make progress on liquidity-generating capital transactions including its multifamily and hotelland sales, its outparcel sales and the multi-property sale-leaseback transaction. Timing of closing on many of thesetransactions is now expected to be later than previously forecast with details noted later in this release.

As part of PREIT’s plan, during the quarter, the Company executed amendments to its Senior Credit Facilities. The Companycontinues its discussions with lenders to put in place a longer-term financing solution before September 30, 2020.

Leasing and Redevelopment• Excluding Fashion District Philadelphia, 267,000 square feet of leases are signed for 2020 openings, which is expected to

contribute annual gross rent of $11.3 million.• During the first quarter, the following anchor replacement tenants opened: Dick’s Sporting Goods at Valley Mall, Burlington

at Dartmouth Mall, Michael’s at Plymouth Meeting and Moorestown Malls.

Mall Re-openings and Community Support Initiatives• Currently, the Company has re-opened three enclosed malls and plans to re-open a fourth on Friday, May 22, 2020.• Details on the re-opening schedule and the new safety and social distancing protocols the Company is employing at its

managed properties can be found here.• Across its portfolio, the Company has hosted blood drives and food donation drives, provided meals to area essential

workers, and donated much needed protective supplies. Read more about our efforts here.• PREIT has continued to support the businesses that were able to remain open during the pandemic through several avenues

including social media support highlighting dining establishments and other contactless pickup options at our properties aswell as ecommerce platforms for certain retailers.

• Shop Local webpages were developed by PREIT, aggregating ecommerce sites for all the small businesses throughout ourportfolio. The offerings highlighted not only to the local audience, but to customers of the entire PREIT portfolio, leveragingthe Company’s marketing power for local business partners.

• Through PREIT’s SBA resources page and contact with tenants, the Company has continued to provide resources for smallerbusiness to access the liquidity needed to make it through this challenging time.

• PREIT’s mall websites now include job portals to collect information to pass along to our retail partners.

Primary Factors Affecting Financial Results for the Three Months Ended March 31, 2020 and 2019:• Net loss attributable to PREIT common shareholders was $13.5 million, or $0.26 per basic and diluted share for the three

months ended March 31, 2020, compared to net loss attributable to PREIT common shareholders of $16.2 million, or $0.30per basic and diluted share for the three months ended March 31, 2019.

• Same Store NOI decreased by $5.3 million, or 10.1%. The decrease is primarily due to lost revenues from bankrupt tenants,an increase in credit losses and a decrease in percentage of sales revenue due to COVID-19 related mall closures, partiallyoffset by new store openings, including contributions from replacement anchors. Lease termination revenue was $0.3million less than the prior year’s quarter.

• Non Same Store NOI decreased by $2.4 million, primarily due to the conveyance of Wyoming Valley Mall to the lender ofthe mortgage loan secured by that property in 2019 and; anchor closings as well as associated co-tenancy rents, decrease inother non-recurring revenue compared to the first quarter of 2019 and the sale of the Whole Foods parcel at Exton Squarein 2019.

• FFO for the three months ended March 31, 2020 was $0.14 per share and OP Unit compared to $0.17 per diluted share andOP Unit for the three months ended March 31, 2019. Adjustments to FFO in the first quarter of 2020 were less than $0.01per share of provision for employee separation expenses. Adjustments to FFO in the 2019 quarter included $0.06 per shareof loss on debt extinguishment, $0.01 per share of provision for employee separation expenses and $0.02 per share ofimpairment of development land parcels.

• General and administrative expenses decreased by $0.5 million compared to the first quarter of 2019 due to lower payrolland incentive compensation expenses.

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All NOI and FFO amounts referenced as primary factors affecting financial results above include our share of unconsolidatedproperties’ revenues and expenses. Additional information regarding changes in operating results for the three months endedMarch 31, 2020 and 2019 is included on page 16.

Asset DispositionsThe Company executed agreements of sale for remaining expected gross proceeds of $281.0 million as detailed below.

Sale/Leaseback: In February 2020, the Company entered into an agreement of sale for the sale and leaseback of five properties for$153.6 million. Structured as a 99-year lease with an option to repurchase, the agreement provides for release of parcels relatedto multifamily development and is subject to ongoing lease payments at 7% ($10.75 million) with annual 1.25% escalations. Closingon the transaction is subject to customary closing conditions, including due diligence provisions and is forecast for late in the year.

Multifamily Land Parcels: The Company has three executed agreements of sale for land parcels for anticipated multifamilydevelopment in the amount of $107.3 million. The agreements are with three different buyers across five properties for 2,650 unitsas part of Phase I of the Company’s previously announced multifamily land sale plan. Closing on the transactions is subject tocustomary due diligence provisions and securing entitlements. One buyer for two other land parcels had terminated its agreementand PREIT has now executed letters of intent with another buyer.

Outparcels: The Company has executed an agreement of sale with Four Corners Property Trust for 14 outparcels, which we expectto generate $29.9 million in total proceeds. To date, the Company has closed on the sale of six of the parcels, totaling $13.4 millionin proceeds. The remaining 8 outparcels are expected to close late in the second quarter or early in the third quarter of 2020 andare subject to customary due diligence provisions.

Hotel Parcels: The Company has executed two agreements of sale to convey land parcels for anticipated hotel development in theamount of $3.75 million. The agreements are with two separate buyers for approximately 250 rooms. Closings on the transactionsare subject to customary due diligence provisions and securing entitlements.

Retail OperationsThe following table sets forth information regarding sales per square foot in the Company’s mall portfolio, including unconsolidatedproperties:

A reconciliation of portfolio sales per square foot (1) for the Core Mall portfolio can be found below:

Comp store sales for the rolling twelve months ended March 31, 2019 $ 499Organic sales growth 30Impact of non-core malls 13Comp store sales for the rolling twelve months ended February 29, 2020 (2) $ 542(1) Based on reported sales by all comparable non-anchor tenants that lease individual spaces of less than 10,000 square feet and have occupied the space for at least 24months.(2) Reported through February 29, 2020 due to COVID-19 pandemic related property closures for partial month of March 2020.

2020 OutlookOn March 31, 2020, the Company withdrew its financial outlook for 2020 provided in its February 25, 2020 earnings press release.

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Conference Call InformationManagement has scheduled a conference call for 1:00 p.m. Eastern Time on Thursday,May 21, 2020, to review the Company’s results and future outlook. To listen to the call, please dial 1-844-885-9139 (domestic tollfree), or 1-647-689-4441 (international), and request to join the PREIT call, Conference ID 6664627, at least five minutes before thescheduled start time. Investors can also access the call in a "listen only" mode via the internet at the Company’s website, preit.com.Please allow extra time prior to the call to visit the site and download the necessary software to listen to the Internet broadcast.Financial and statistical information expected to be discussed on the call will also be available on the Company’s website.For interested individuals unable to join the conference call, the online archive of the webcast will also be available for one yearfollowing the call.

About PREITPREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets.PREIT’s robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainmentexperiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic’s top MSAs. Since2012, the Company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven bydisciplined capital expenditures. Additional information is available at www.preit.com or on Twitter or LinkedIn.

Rounding

Certain summarized information in the tables above may not total due to rounding.

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Pennsylvania Real Estate Investment TrustChanges in Funds from Operations

for the Three Months Ended March 31, 2020 as compared to the Three Months Ended March 31, 2019(all per share amounts on a diluted basis unless otherwise noted; rounded to the nearest half penny; amounts may not total due to

rounding)

(in thousands, except per share amounts)

Three MonthsEnded

March 31,2020

Per DilutedShare and OP

UnitFunds from Operations, as adjusted March 31, 2019 $ 20,655 $ 0.26

Changes - Q1 2019 to Q1 2020

Other leasing activity, including base rent and net CAM and real estate taxrecoveries (3,166) (0.040)Lease termination revenue (288) (0.005)Credit losses (1,345) (0.015)Other (42) -Same Store NOI from unconsolidated properties (440) (0.005)Same Store NOI (5,281) (0.065)Non Same Store NOI (2,434) (0.030)Dilutive effect of asset sales (473) (0.005)General and administrative expenses 666 0.010Capitalization of leasing costs (156) -Gain on sales of non-operating real estate (609) (0.010)Other 170 -Interest expense, net (1,266) (0.015)Increase in weighted average shares - (0.005)Funds from Operations, as adjusted March 31, 2020 $ 11,272 $ 0.14Provision for employee separation expense (73) -Funds from Operations March 31, 2020 $ 11,199 $ 0.14

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Pennsylvania Real Estate Investment TrustMarket Capitalization and Capital Resources

(in thousands)

March 31,2020

December 31,2019

MARKET CAPITALIZATION

EQUITY CAPITALIZATIONCommon Shares Outstanding 78,840 77,550OP Units Outstanding 2,023 2,023Total Common Shares and OP Units Outstanding 80,863 79,573Equity Market Capitalization—Common Shares and OP Units $ 73,585 $ 424,124Series B Preferred Shares, Nominal Value 86,250 86,250Series C Preferred Shares, Nominal Value 172,500 172,500Series D Preferred Shares, Nominal Value 125,000 125,000Total Equity Market Capitalization $ 457,335 $ 807,874

DEBT CAPITALIZATIONSecured Debt Balance (1) $ 1,275,645 $ 1,280,208Unsecured Debt Balance (2) (3) 839,000 805,000Debt Capitalization $ 2,114,645 $ 2,085,208TOTAL MARKET CAPITALIZATION $ 2,571,980 $ 2,893,082

Equity Capitalization/Total Market Capitalization 17.8% 27.9%Debt Capitalization/Total Market Capitalization 82.2% 72.1%Unsecured Debt Balance/Total Debt 39.7% 38.6%

CAPITAL RESOURCESCash and Cash Equivalents $ 16,302 $ 26,922Revolving Facility 400,000 400,000Amount Outstanding (289,000) (255,000)Available Revolving Facility (4) $ 111,000 $ 145,000Term Loans 700,500 700,500Amount Borrowed (700,500) (700,500)Available Term Loans $ - $ -TOTAL $ 127,302 $ 171,922

Shelf Registration $ 500,000 $ 1,000,000

(1) Includes consolidated mortgage debt, our share of mortgage debt from equity method investments, and $150,500 of secured debt from our share of theFDP Term Loan.

(2) The unsecured debt balance includes a 2018 Revolving Facility balance of $289,000 as of March 31, 2020 and $255,000 as of December 31, 2019.(3) The unsecured debt balance includes a Term Loan balance of $550,000 as of March 31, 2020 and December 31, 2019, respectively.(4) The available Credit Facility borrowings are subject to covenants that may restrict amounts that can be borrowed. Following recent property sales and

the amendments of our Credit Agreements on March 30, 2020, the NOI from the Company’s remaining unencumbered properties is at a level such thatthe incremental unsecured amount available for the Company to borrow as of March 31, 2020 within the Unencumbered Debt Yield covenant, under the$375.0 million 2018 Revolving Facility, was an aggregate of $65.3 million.

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Pennsylvania Real Estate Investment TrustStatement of Operations – Three Months Ended March 31, 2020 and 2019


(in thousands of dollars) 2020 2019REVENUE:Real estate revenue:

Lease revenue $ 67,721 $ 76,615Expense reimbursements 4,305 5,062Other real estate revenue 1,924 3,001

Total real estate revenue 73,950 84,678Other income 293 627

Total revenue 74,243 85,305EXPENSES:Operating expenses:Property operating expenses:

CAM and real estate taxes (27,517) (29,403)Utilities (2,922) (3,660)Other property operating expenses (2,098) (2,065)

Total property operating expenses (32,537) (35,128)Depreciation and amortization (30,269) (34,904)General and administrative expenses (10,695) (11,205)Provision for employee separation expenses (73) (719)Insurance recoveries, net - (236)Project costs and other expenses (95) (58)

Total operating expenses (73,669) (82,250)Interest expense, net(1) (16,858) (15,898)Loss on debt extinguishment, net - (4,768)Impairment of development land parcel - (1,464)

Total expenses (90,527) (104,380)Loss before equity in income of partnerships, gain on sales of real estate by equity methodinvestee, gain on sales of real estate, net, and adjustment to loss on sales of interests in nonoperating real estate (16,284) (19,075)Equity in income of partnerships(2) 819 2,289Gain on sales of real estate by equity method investee - 563Gain on sales of real estate, net 1,962 -Loss on sales of interests in non operating real estate (46) -Net loss (13,549) (16,223)

Less: net loss attributable to noncontrolling interest 516 1,688Net loss attributable to PREIT (13,033) (14,535)

Less: preferred share dividends (6,844) (6,844)Net loss attributable to PREIT common shareholders $ (19,877) $ (21,379)

(1) Net of capitalized interest expense of $910 and $2,004 for the three months ended March 31, 2020 and 2019, respectively.(2) Equity in income of partnerships is net of capitalized interest expense of $1,091 and $1,472 for the three months ended March 31, 2020 and 2019,

respectively.

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Pennsylvania Real Estate Investment TrustComputation of Earnings Per Share – Three Months Ended March 31, 2020 and 2019

(in thousands, except per share amounts)


(in thousands, except per share amounts) 2020 2019

Net loss $ (13,549) $ (16,223)Noncontrolling interest 516 1,688Preferred share dividends (6,844) (6,844)Dividends on unvested restricted shares (350) (218)Net loss used to calculate loss per share—basic and diluted $ (20,227) $ (21,597)

Basic and diluted income (loss) per share: $ (0.26) $ (0.30)

(in thousands of shares)Weighted average shares outstanding—basic 76,774 71,358Effect of common share equivalents(1) — —Weighted average shares outstanding—diluted 76,774 71,358

(1) The Company had net losses used to calculate earnings per share for all periods presented. Therefore, the effects of common shareequivalents of 520 and 309 for the three months ended March 31, 2020 and 2019, respectively, are excluded from the calculation of dilutedloss per share for these periods because they would be antidilutive.

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Pennsylvania Real Estate Investment TrustReconciliation of Net Operating Income and Earnings Before Interest, Income Taxes, Depreciation, and Amortization for Real Estate–

Three Months Ended March 31, 2020 and 2019 (Non-GAAP Measures)(in thousands)

Net Operating Income ("NOI") Reconciliation for the Three Months Ended March 31, 2020(1)

Same Store Change Non Same Store Total

2020 2019 $ % 2020 2019 2020 2019

NOI from consolidated properties $ 40,430 $ 45,271 $ (4,841) -10.7% $ 983 $ 4,278 $ 41,413 $ 49,549NOI attributable to equity method investments,at ownership share 6,612 7,052 (440) -6.2% 832 (29) 7,444 7,023

Total NOI 47,042 52,323 (5,281) -10.1% 1,815 4,249 48,857 56,572

Less: lease termination revenue 9 300 (291) -97.0% - 16 9 316

Total NOI excluding lease termination revenue $ 47,033 $ 52,023 $ (4,990) -9.6% $ 1,815 $ 4,233 $ 48,848 $ 56,256

(1) NOI is a non-GAAP measure. See definition of NOI on page 34.

Earnings Before Interest, Income Taxes, Depreciation, and Amortization for Real Estate ("EBITDAre") Reconciliation(1)


2020 2019

Net loss $ (13,549) $ (16,223)

Depreciation and amortization:

Consolidated 30,269 34,904

Unconsolidated properties at ownership share 3,610 1,970

Interest expense:

Consolidated 16,858 15,898

Unconsolidated properties at ownership share 2,969 2,663

Gain on sales of real estate by equity method investee - (563)

Gain on sales of interests in real estate, net (1,962) -

Gain on debt extinguishment, net - 4,768

Impairment of development land parcel - 1,464

EBITDAre $ 38,195 $ 44,881

(1) EBITDAre is a non-GAAP measure. See definition on page 35.

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Pennsylvania Real Estate Investment TrustReconciliation of Net Income (Loss) to Net Operating Income from Consolidated Properties (Non-GAAP Measure)

Three Months Ended March 31, 2020 and 2019(in thousands)

Three Months Ended March 31,2020 2019

Net loss $ (13,549) $ (16,223)

Other income (293) (628)

Depreciation and amortization 30,269 34,904

General and administrative expenses 10,695 11,205

Insurance recoveries, net - 236

Provision for employee separation expenses 73 719

Project costs and other expenses 95 58

Interest expense, net 16,858 15,898

Equity in income of partnerships (819) (2,289)

Gain on debt extinguishment, net - 4,768

Impairment of development land parcel - 1,464

Gain on sales of real estate by equity method investee - (563)

Gain on sales of interests in real estate, net (1,962) -

Loss on sales of interest in non operating real estate 46 -

NOI from consolidated properties(1) $ 41,413 $ 49,549


Same Store Non Same Store Total2020 2019 2020 2019 2020 2019

Real estate revenueBase rent $ 48,480 $ 50,387 $ 2,568 $ 5,498 $ 51,048 $ 55,885CAM reimbursement income 9,666 10,671 502 974 10,168 11,645Real estate tax income 8,318 8,981 178 559 8,496 9,540Percentage rent 16 1 3 8 19 9Lease termination revenue 9 297 - 16 9 313

66,489 70,337 3,251 7,055 69,740 77,392Less: credit losses (1,892) (547) (127) (230) (2,019) (777)Lease revenue 64,597 69,790 3,124 6,825 67,721 76,615Expense reimbursements 4,012 4,420 293 642 4,305 5,062Other real estate revenue 1,785 1,769 139 1,232 1,924 3,001Total real estate revenue 70,394 75,979 3,556 8,699 73,950 84,678Property operating expensesCAM and real estate taxes (25,397) (25,729) (2,120) (3,674) (27,517) (29,403)Utilities (2,679) (3,149) (243) (511) (2,922) (3,660)Other property operating expenses (1,888) (1,830) (210) (236) (2,098) (2,066)Total property operating expenses (29,964) (30,708) (2,573) (4,421) (32,537) (35,129)NOI from consolidated properties(1) $ 40,430 $ 45,271 $ 983 $ 4,278 $ 41,413 $ 49,549Less: Lease termination revenue 9 297 - 16 9 313NOI from consolidated properties excludinglease termination revenue(1) $ 40,421 $ 44,974 $ 983 $ 4,262 $ 41,404 $ 49,236

% change in Same Store NOI fromconsolidated properties excluding leasetermination revenue (10.1%)


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Pennsylvania Real Estate Investment TrustReconciliation of Equity in Income of Partnerships to Net Operating Income from Equity Method Investments, at Ownership Share

(Non-GAAP Measure)Three Months Ended March 31, 2020 and 2019

(in thousands)

Three Months Ended March 31,2020 2019

Equity in income of partnerships $ 819 $ 2,289

Other income (14) (12)

Depreciation and amortization 3,610 1,970

Interest expense and other expenses, net 3,029 2,776

NOI from equity method investments at ownership share(1) $ 7,444 $ 7,023


Same Store Non Same Store Total2020 2019 2020 2019 2020 2,019

Real estate revenueBase rent $ 6,413 $ 6,719 $ 1,430 $ 172 $ 7,843 $ 6,891CAM reimbursement income 1,445 1,684 583 7 2,028 1,691Real estate tax income 977 943 108 43 1,085 986Percentage rent 57 46 20 - 77 46Lease termination revenue - 3 - - - 3

8,892 9,395 2,141 222 11,033 9,617Less: credit losses (171) (66) (162) (2) (333) (68)Lease revenue 8,721 9,329 1,979 220 10,700 9,549Expense reimbursements 435 451 156 41 591 492Other real estate revenue 197 280 611 171 808 451Total real estate revenue 9,353 10,060 2,746 432 12,099 10,492Property operating expensesCAM and real estate taxes (2,051) (2,271) (1,539) (366) (3,590) (2,637)Utilities (178) (203) (138) (45) (316) (248)Other property operating expenses (512) (534) (237) (50) (749) (584)Total property operating expenses (2,741) (3,008) (1,914) (461) (4,655) (3,469)NOI from equity method investments atownership share(1) $ 6,612 $ 7,052 $ 832 $ (29) $ 7,444 $ 7,023Less: Lease termination revenue - 3 - - - 3NOI from equity method investments atownership share excluding lease terminationrevenue(1) $ 6,612 $ 7,049 $ 832 $ (29) $ 7,444 $ 7,020

% change in Same Store NOI from equitymethod investments at ownership shareexcluding lease termination revenue (6.2%)


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Pennsylvania Real Estate Investment TrustReconciliation of Net Income to Funds From Operations and Funds Available for Distribution (Non-GAAP Measures)

Three Months Ended March 31, 2020 and 2019(in thousands, except per share amounts)


2020 2019FUNDS FROM OPERATIONS

Net loss $ (13,549) $ (16,223)Depreciation and amortization on real estate

Consolidated properties 29,944 34,565PREIT's share of equity method investments 3,610 1,970

Gain on sales of real estate by equity method investee - -Gain on sales of interests in real estate, net (1,962) -Impairment of assets - -Dividends on preferred shares (6,844) (6,844)Funds from operations attributable to common shareholders and OP Unit holders(1) $ 11,199 $ 13,468Insurance recoveries, net - 236Loss on debt extinguishment, net - 4,768Impairment of development land parcel - 1,464Provision for employee separation expenses 73 719Funds from operations, as adjusted, attributable to common shareholders and OP Unitholders $ 11,272 $ 20,655

FUNDS AVAILABLE FOR DISTRIBUTION(1)

Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders(1) $ 11,272 $ 20,655Adjustments:

Straight line rent (1,013) (1,589)Recurring capital expenditures (1,034) (2,013)Tenant allowances (1,017) (2,070)Amortization of non-cash deferred compensation 1,624 1,922Capitalized leasing costs (164) (320)Amortization of above- and below-market lease intangibles (17) (14)

Funds available for distribution to common shareholders and OP Unit holders(1) $ 9,651 $ 16,571

Funds from operations attributable to common shareholders and OP Unit holders per diluted shareand OP Unit(1) $ 0.14 $ 0.17Funds from operations, as adjusted, attributable to common shareholders and OP Unit holders perdiluted share and OP Unit $ 0.14 $ 0.26Funds available for distribution to common shareholders and OP Unit holders per diluted shareand OP Unit(1) $ 0.12 $ 0.21

(1) Non-GAAP measures. See definitions on page 34.

(Continued on next page)

14

Pennsylvania Real Estate Investment TrustReconciliation of Net Income to Funds From Operations and Funds Available for Distribution (Non-GAAP Measures)

Three Months Ended March 31, 2020 and 2019(in thousands, except per share amounts)


2020 2019PAYOUT RATIOS (2)

Payout ratio of funds from operations attributable to common shareholders and OP Unit holders 64.6% 64.0%Payout ratio of funds from operations attributable to common shareholders and OP Unit holders,as adjusted 90.4% 55.4%Payout ratio of funds available for distribution attributable to common shareholders and OP Unitholders 144.6% 97.5%

Weighted average number of shares outstanding 76,774 71,358Weighted average effect of full conversion of OP Units 2,023 6,884Effect of common share equivalents 520 309Total weighted average shares outstanding, including OP Units 79,317 78,551

(2) Twelve months ended March 31, 2020 and 2019, respectively. When using the annualized amount of the recently declared quarterly dividend of $0.02per common share, the FFO Payout ratio, FFO, as adjusted Payout ratio, and FAD Payout ratio would be 6.2%, 8.6% and 13.8%, respectively, for thethree months ended March 31, 2020.

15

Pennsylvania Real Estate Investment TrustCondensed Consolidated Balance Sheet

March 31, 2020 December 31, 2019(in thousands, except per share amounts) (Unaudited)

ASSETS:INVESTMENTS IN REAL ESTATE, at cost:

Operating properties $ 3,140,293 $ 3,099,034Construction in progress 81,485 106,011Land held for development 5,881 5,881

Total investments in real estate 3,227,659 3,210,926Accumulated depreciation (1,230,657) (1,202,722)

Net investments in real estate 1,997,002 2,008,204INVESTMENTS IN PARTNERSHIPS, at equity: 167,167 159,993OTHER ASSETS:

Cash and cash equivalents 5,351 12,211Tenant and other receivables 36,929 41,261Intangible assets (net of accumulated amortization of $17,733 and $18,248 at

March 31, 2020 and December 31, 2019, respectively) 12,846 13,404Deferred costs and other assets, net 98,110 103,688Assets held for sale 6,536 12,506

Total assets $ 2,323,941 $ 2,351,267

LIABILITIES:Mortgage loans payable, net $ 896,495 $ 899,753Term Loans, net 548,216 548,025Revolving Facilities 289,000 255,000Tenants’ deposits and deferred rent 5,918 13,006Distributions in excess of partnership investments 85,770 87,916Fair value of derivative liabilities 31,695 13,126Accrued expenses and other liabilities 94,882 107,016

Total liabilities 1,951,976 1,923,842COMMITMENTS AND CONTINGENCIES:EQUITY:

Total equity 371,965 427,425Total liabilities and equity $ 2,323,941 $ 2,351,267

16

Pennsylvania Real Estate Investment TrustAssets and Liabilities - Equity Method Investments, at Ownership Share (Non-GAAP)

(in thousands)

March 31,(in thousands of dollars) 2020 2019

ASSETS:Investments in real estate, at cost:

Operating properties $ 452,012 $ 276,067Construction in progress 117,551 222,716

Total investments in real estate 569,563 498,783Accumulated depreciation (116,923) (106,918)Net investments in real estate 452,640 391,865Cash and cash equivalents 10,952 16,561Deferred costs and other assets, net 51,054 15,140

Total assets 514,646 423,566LIABILITIES AND PARTNERS’ INVESTMENT:Mortgage loans payable, net 224,800 231,297FDP Term Loan 150,500 125,000Other liabilities 57,949 8,701

Total liabilities 433,249 364,998Net investment $ 81,397 $ 58,568

Reconciliation to comparable GAAP balance sheet item:Investment in partnerships, at equity $ 167,167 $ 149,795Distributions in excess of partnership investments (85,770) (91,227)Net investment $ 81,397 $ 58,568

The non-GAAP financial information presented above includes financial information attributable to our share of unconsolidated properties. This proportionatefinancial information is non-GAAP financial information, but we believe that it is helpful information because it reflects the pro rata contribution from ourunconsolidated properties that are owned through investments accounted for under GAAP using the equity method of accounting. Under such method, ourinvestments in these entities are recorded in the balance sheet caption entitled “Investment in partnerships, at equity.” In the case of deficit investment balances,such amounts are recorded in “Distributions in excess of partnership investments.”

To derive the proportionate financial information reflected in the tables above we multiplied the percentage of our economic interest in each partnership on aproperty-by-property basis by each line item. Under the partnership agreements relating to our current unconsolidated partnerships with third parties, we own a25% to 50% economic interest in such partnerships, and there are generally no provisions in such partnership agreements relating to special non-pro rata allocationsof income or loss, and there are no preferred or priority returns of capital or other similar provisions. While this method approximates our indirect economic interestin our pro rata share of the assets and liabilities of our unconsolidated partnerships, we do not control these partnerships or have a direct legal claim to the assets,liabilities, revenues or expenses of the unconsolidated partnerships beyond our rights as an equity owner in the event of any liquidation of such entity. Ourpercentage ownership is not necessarily indicative of the legal and economic implications of our ownership interest.

17

Pennsylvania Real Estate Investment TrustLeasing Activity Summary – Three Months Ended March 31, 2020

Number GLA Term

Initial Rentper squarefoot ("psf")

PreviousRent psf

Initial Gross RentRenewal Spread(1)

AverageRent

RenewalSpread(2)

AnnualizedTenant

Improvementspsf(3)

$ % %Non AnchorNew Leases

Under 10k square feet ("sf") Consolidated 26 59,010 6.8 $ 40.62 N/A N/A N/A N/A $ 9.52Unconsolidated(4) 2 6,581 6.0 47.63 N/A N/A N/A N/A 6.76

Total Under 10k sf 28 65,591 6.7 $ 41.32 N/A N/A N/A N/A $ 9.27Total New Leases 28 65,591 6.7 $ 41.32 N/A N/A N/A N/A $ 9.27

Renewal LeasesUnder 10k sf Consolidated 48 126,556 3.0 $ 54.22 $ 54.95 $ (0.73) (1.3%) 5.2% $ 0.01

Unconsolidated(4) 7 23,971 2.1 $ 34.63 $ 52.22 (17.59) (33.7%) (34.2%) -Total Under 10k sf 55 150,527 2.8 $ 51.10 $ 54.52 $ (3.41) (6.3%) (1.3%) $ 0.01

Total Over 10k sf Consolidated 1 11,344 2.0 26.45 28.98 (2.53) (8.7%) (8.7%) -Total Fixed Rent 56 161,871 2.8 $ 49.37 $ 52.73 $ (3.35) (6.4%) (1.6%) $ 0.01Total Percentage in Lieu Consolidated 11 17,719 1.2 53.00 90.92 (37.92) (41.7%) N/A -Total Renewal Leases (4) 67 179,590 2.6 $ 49.73 $ 56.49 $ (6.76) (12.0%) $ 0.02Total Non Anchor 95 245,181 3.7 $ 47.48

(1) Initial gross rent renewal spread is computed by comparing the initial rent psf in the new lease to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amountincludes minimum rent, CAM charges, estimated real estate tax reimbursements and marketing charges, but excludes percentage rent. In certain cases, a lower rent amount may be payable for a periodof time until specified conditions in the lease are satisfied.

(2) Average rent renewal spread is computed by comparing the average rent psf over the new lease term to the final rent psf amount in the expiring lease. For purposes of this computation, the rent amountincludes minimum rent and fixed CAM charges, but excludes pro rata CAM charges, estimated real estate tax reimbursements, marketing charges and percentage rent.

(3) Tenant improvements and certain other leasing costs are presented as annualized amounts per square foot and are spread uniformly over the initial lease term.(4) We own a 25% to 50% interest in each of our unconsolidated properties and do not control such properties. Our percentage ownership is not necessarily indicative of the legal and economic implications

of our ownership interest. See “—Non-GAAP Supplemental Financial Measures” in our Annual Report on Form 10-K for the year ended December 31, 2019 for further details on our ownership interestsin our unconsolidated properties.

18

Pennsylvania Real Estate Investment TrustSummarized Sales and Rent Per Square Foot and Occupancy Percentages

March 31, 2020 and February 29, 2020 where applicable March 31, 2019Actual Occupancy Leased Occupancy Actual Occupancy

%Rolling12 Mo.

NOI

AverageCompSales(1)

AverageGross

Rent(2)(3)Occupancy

Cost TotalNon-

Anchor TotalNon-

Anchor

%Rolling12 Mo.

NOI

AverageCompSales

AverageGross

Rent(2)(3)Occupancy

Cost TotalNon-

AnchorMalls 89.3% $ 542 $ 59.21 12.3% 92.9% 90.3% 94.0% 92.0% 87.0% $ 517 $ 60.24 12.7% 94.7% 91.5%Non-Core Malls 3.1% $ 349 44.49 12.7% 60.1% 68.8% 60.1% 68.8% 7.8% 348 44.08 12.7% 76.2% 77.4%Malls Total 92.4% $ 529 $ 58.36 12.3% 90.0% 88.8% 90.9% 90.4% 94.8% $ 504 $ 59.16 12.7% 92.9% 90.4%Other Retail Properties 5.8% n/a 25.40 n/a 89.9% 89.0% 93.1% 92.6% 5.1% n/a 25.15 n/a 92.7% 92.1%Total Retail Properties 98.2% $ 529 $ 49.65 12.3% 90.0% 88.8% 91.2% 90.7% 100.0% n/a $ 50.23 n/a 92.9% 90.7%Sold Properties 1.3% n/a n/a n/a n/a n/a n/a n/a -% 377 49.15 n/a 65.6% 87.2%Other Properties (4) 0.5% n/a n/a n/a n/a n/a n/a n/a -% n/a n/a n/a n/a n/aTotal Portfolio 100.0% $ 529 $ 49.65 12.3% 90.0% 88.8% 91.2% 90.7% 100.0% $ 499 $ 49.23 91.5% 90.7%

(1) Average comp sales for 2020 reflects the data for the trailing twelve months ended February 29,2020 due to the widespread COVID-19 related mall closures, which resulted in non comparable March2020 sales amounts.

(2) Average gross rent for malls includes all non-anchor space owned by the Company and leased to tenants that occupy individual spaces of less than 10,000 square feet. Average gross rent for other retailproperties includes all non-anchor space owned by the Company regardless of size.

(3) Average gross rent for mall tenants greater than 10,000 sf was $21.32 per square foot as of March 31, 2020 and $21.99 per square foot as of March 31, 2019.(4) Operating metrics for Fashion District Philadelphia as of March 31, 2020 and 2019, respectively, are excluded because the property was under redevelopment until September 2019 and has not yet

stabilized.

19

Pennsylvania Real Estate Investment TrustMall Occupancy Percentage and Sales Per Square Foot

March 31, 2020 and February 29, 2020 where applicable March 31, 2019 Change

% of MallNOI

Avg CompSales (1)

TotalOccupancy

%

Non-Anchor

Occupancy%

Avg CompSales (1)

TotalOccupancy

%

Non-AnchorOccupancy

%Avg Comp

Sales (1)

TotalOccupancy

%

Non-Anchor

Occupancy%

Top 6 MallsWillow Grove Park 6.5% $ 769 97.1% 95.2% $ 749 93.6% 88.9% 2.7% 3.5% 6.3%Cherry Hill Mall 13.4% 733 94.2% 93.0% 690 94.7% 93.6% 6.2% (0.5%) (0.6%)Woodland Mall 6.0% 642 95.9% 95.1% 579 98.4% 98.4% 10.9% (2.5%) (3.3%)Lehigh Valley Mall 6.0% 589 89.9% 83.3% 568 91.4% 86.0% 3.7% (1.5%) (2.7%)Mall at Prince Georges 7.5% 573 98.3% 96.4% 558 98.4% 96.6% 2.2% (0.1%) (0.2%)Springfield Town Center 11.0% 570 92.0% 89.3% 552 93.4% 91.1% 3.8% (1.4%) (1.8%)

50.4% $ 651 94.3% 91.5% $ 621 94.7% 92.2% 4.8% (0.4%) (0.7%)

Malls 7-12Dartmouth Mall 4.0% 548 99.1% 98.7% 522 98.3% 97.1% 5.0% 0.8% 1.6%Jacksonville Mall 4.1% 517 96.1% 92.4% 501 99.9% 99.8% 3.2% (3.8%) (7.4%)Magnolia Mall 3.4% 463 97.3% 95.4% 464 98.6% 97.7% (0.2%) (1.3%) (2.3%)Capital City Mall 5.2% 455 98.9% 98.4% 434 98.5% 97.8% 4.8% 0.4% 0.6%Patrick Henry Mall 4.7% 455 93.8% 90.9% 417 94.8% 92.4% 9.1% (1.0%) (1.5%)Viewmont Mall 4.2% 441 97.1% 94.0% 429 97.8% 95.5% 2.8% (0.7%) (1.5%)

25.6% $ 473 97.1% 92.5% $ 453 98.1% 96.7% 4.4% (1.0%) (4.2%)

Malls 13-18Valley Mall 5.0% 424 98.8% 97.5% 410 96.4% 92.8% 3.4% 2.4% 4.7%Moorestown Mall 3.1% 416 79.9% 83.5% 410 92.3% 82.1% 1.5% (12.4%) 1.4%Springfield Mall 1.6% 398 93.7% 93.7% 404 96.8% 96.8% (1.5%) (3.1%) (3.1%)Cumberland Mall 3.0% 388 87.5% 79.6% 387 86.5% 77.9% 0.3% 1.0% 1.7%Francis Scott Key Mall 3.9% 376 93.9% 90.4% 373 91.8% 87.2% 0.8% 2.1% 3.2%Plymouth Meeting Mall 4.1% 358 83.2% 75.0% 326 91.7% 87.3% 9.8% (8.5%) (12.3%)

20.7% $ 395 88.4% 85.0% $ 385 92.2% 86.5% 2.6% (3.8%) (1.5%)

All Core Malls 96.7% $ 542 92.9% 90.3% $ 517 94.7% 91.5% 4.8% (1.8%) (1.2%)

Non-Core MallsWyoming Valley Mall -% $ 0 -% -% $ 377 65.6% 87.2%Valley View Mall 1.8% 382 66.1% 82.0% 355 71.4% 92.3% 7.6% (5.3%) (10.3%)Exton Square Mall 1.5% 313 57.1% 61.3% 342 78.4% 70.0% (8.5%) (21.3%) (8.7%)All Non-Core Malls 3.3% $ 349 60.1% 68.8% $ 359 72.0% 80.2% (2.8%) (11.9%) (11.4%)

All Malls 100.0% $ 529 90.0% 88.8% $ 499 91.5% 90.7% 6.0% (1.5%) (1.9%)

(1) Based on reported sales by all comparable non-anchor tenants that lease individual spaces of less than 10,000 square feet and have occupied the space for at least 24 months. Due to widespread COVID-19 related mall closures, the 2020 average comp sales are based on the trailing twelve months ended February 29, 2020 data for comparability purposes.

20

Pennsylvania Real Estate Investment TrustTop Twenty Tenants

March 31, 2020

Tenant Brands

Locations atConsolidated

Properties

Locations atUnconsolidated

PropertiesTotal Numberof Locations (1)

Percentage ofAnnualized

Gross Rent (2)

Foot Locker, Inc. Champs, Foot Locker, Footaction, House of Hoops by Foot Locker, KidsFoot Locker, Lady Foot Locker, Nike Yardline, Footaction Flight 23 42 8 50 4.5%

L Brands, Inc. Bath & Body Works, Pink, Victoria's Secret 36 6 42 4.0%Signet Jewelers Limited Kay Jewelers, Piercing Pagoda, Totally Pagoda, Zales Jewelers, Silver &

Gold Connection 54 9 63 3.1%Dick's Sporting Goods, Inc. Dick's Sporting Goods 11 1 12 2.6%American Eagle Outfitters, Inc. Aerie, American Eagle Outfitters 16 4 20 2.5%Express, Inc Express, Express Factory Outlet, Express Men 13 3 16 1.9%Gap, Inc. Banana Republic, Gap/Gap Kids/Gap Outlet, Old Navy 12 9 21 1.8%J.C. Penney Company, Inc. JC Penney, Penneys Firestone 13 1 14 1.7%Macy's Bloomingdale's, Macy's 12 2 14 1.6%Home Depot Home Depot 1 2 3 1.5%Cineworld Group Regal Cinemas 4 - 4 1.5%Genesco Inc. Johnston & Murphy, Journeys, Journeys Kidz, Underground by Journeys 25 4 29 1.5%Dave & Buster's, Inc. Dave & Buster's 3 - 3 1.4%Ascena Retail Group, Inc. Ann Taylor, Dress Barn, Justice, Lane Bryant, Loft, Loft Outlet 21 5 26 1.3%Luxottica Group S.p.A. Lenscrafters, Pearle Vision, Sunglass Hut, Sunglass Hut Outlet 23 6 29 1.3%H&M Hennes & Mauritz L.P. H&M 12 - 12 1.3%Darden Concepts, Inc. Bahama Breeze, Capital Grille, Olive Garden, Seasons 52, Yard House 9 - 9 1.2%Shoe Show, Inc. Shoe Department, Shoe Dept. Encore, Shoe Show 20 2 22 1.1%The Children's Place, Inc. The Children's Place 14 3 17 1.0%The TJX Companies, Inc. HomeGoods, HomeSense, Marshalls, Sierra Trading Post, TJ Maxx 7 1 8 0.9%

Total Top 20 Tenants 348 66 414 37.7%

Total Leases 1,450 312 1,762 100.0%

(1) Excludes tenants from Fashion District Philadelphia.(2) Includes our share of tenant gross rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments as of March 31, 2020.

21

Pennsylvania Real Estate Investment TrustLease Expirations as of March 31, 2020

(dollars in thousands except per square foot (“psf”) amounts)

Non-Anchors (1)

Gross Leasable Area ("GLA") Annualized Gross Rent

LeaseExpiration Year

Number ofLeases Expiring Expiring GLA (2) Percent of Total

Gross Rent inExpiring Year

PREIT’s Share ofGross Rent in

Expiring Year (3)Percent of

PREIT’s TotalAverage Expiring

Gross Rent psf2020 and Prior 264 889,994 11.0% 37,531 33,400 11.1% 42.172021 268 1,083,990 13.4% 41,562 35,302 11.7% 38.342022 221 686,560 8.5% 33,666 29,292 9.7% 49.042023 182 1,128,482 13.8% 40,871 36,187 12.0% 36.222024 166 708,036 8.7% 37,097 33,722 11.2% 52.392025 160 743,519 9.2% 38,813 31,830 10.6% 52.202026 116 580,749 7.2% 31,333 24,542 8.1% 53.952027 92 644,209 7.9% 25,058 23,406 7.8% 38.902028 74 612,485 7.6% 22,355 21,047 7.0% 36.502029 57 467,071 5.8% 17,133 16,301 5.4% 36.68Thereafter 48 563,346 6.9% 17,125 16,374 5.4% 30.40Total/Average 1,648 8,108,441 100.0% $ 342,544 $ 301,403 100.0% $ 42.25

Anchors(1)

Gross Leasable Area ("GLA") Annualized Gross Rent

LeaseExpiration Year

Number ofLeases Expiring Expiring GLA (2) Percent of Total

Gross Rent inExpiring Year

PREIT’s Share ofGross Rent in

Expiring Year (3)Percent of

PREIT’s TotalAverage Expiring

Gross Rent psf2020 and prior 1 85,212 1.7% 689 689 2.1% 8.082021 7 648,162 13.2% 3,977 2,760 8.4% 6.142022 7 1,001,974 20.3% 3,790 3,435 10.5% 3.782023 3 348,592 7.1% 1,865 1,865 5.7% 5.352024 5 702,674 14.3% 6,988 6,988 21.4% 9.942025 5 731,526 14.8% 2,659 2,659 8.1% 3.632026 1 58,371 1.2% 861 861 2.6% 14.752028 9 982,424 19.9% 6,847 6,847 21.0% 6.972029 1 65,155 1.3% 2,210 2,210 6.8% 33.92Thereafter 5 302,268 6.2% 4,367 4,367 13.4% 14.45Total/Average 44 4,926,358 100.0% $ 34,253 $ 32,681 100.0% $ 28.91

(1) Only includes owned space. Excludes tenants from Fashion District Philadelphia.(2) Does not include tenants occupying space under license agreements with initial terms of less than one year. The aggregate GLA of these tenants is 465,952 square feet.(3) Includes our share of tenant rent from partnership properties based on PREIT’s ownership percentage in the respective equity method investments.

22

Pennsylvania Real Estate Investment TrustProperty Information as of March 31, 2020

Landlord Owned Anchors/Large Format Non Anchor Anchor Stores Not Owned

Non-anchoroccupied GLA

Properties Location TenantExpiration

Year GLA Tenant GLALarge

FormatSmallShop Vacant

TotalGLA

Core MallsCapital City Mall Camp Hill, PA JCPenney 2028 102,825 Macy's 120,000 104,806 171,835 5,305 616,750

Dick's Sporting Goods 2028 61,677Sportsman's Warehouse 2031 50,302

Cherry Hill Mall Cherry Hill, NJ Nordstrom 2025 138,000 JCPenney 174,285 227,087 408,612 47,529 1,300,113Macy's 304,600

Cumberland Mall Vineland, NJ Burlington 2021 80,983BJ's WholesaleClub 117,889 137,493 148,260 84,563 950,987

The Home Depot 2024 132,013 Boscov's 155,341Dick's Sporting Goods 2028 50,000Regal Cinemas 2024 44,445

Dartmouth Mall Dartmouth, MA JCPenney 2024 100,020 Macy's 140,000 129,427 145,982 4,198 608,455Burlington 2030 43,840AMC Theaters 2026 44,988

Francis Scott Key Mall Frederick, MD JCPenney 2021 101,293 Macy's 139,333 139,863 165,110 37,635 754,267Sears 2023 120,883Dick's Sporting Goods 2025 50,150

Jacksonville Mall Jacksonville, NC Belk 2021 72,510 112,570 121,155 19,105 494,945JCPenney 2025 51,812Sears 2021 117,793

Lehigh Valley Mall Allentown, PA Boscov's 2022 164,694 JCPenney 207,292 141,510 338,082 96,191 1,159,769Macy's 2022 212,000

Magnolia Mall Florence, SC Belk 2028 115,793 96,175 140,229 15,813 594,860Best Buy 2023 32,054JCPenney 2022 104,107Dick's Sporting Goods 2023 45,000Burlington 2028 45,689

Moorestown Mall (1) Moorestown, NJ Boscov's 2028 202,765 88,046 182,350 191,897 956,978Sears 2022 205,591Regal Cinemas 2028 57,843HomeSense 2028 28,486

Patrick Henry Mall Newport News, VA Dick's Sporting Goods 2022 50,250 Dillard's 144,157 60,095 210,859 27,091 717,664JCPenney 2020 85,212 Macy's 140,000

Plymouth Meeting Mall Plymouth Meeting, PA Boscov's 2028 188,429 136,418 180,988 152,015 903,697Whole Foods 2029 65,155Burlington 2030 41,883AMC Theaters 2027 48,000Dick's Sporting Goods 2031 57,588LEGOLAND Discovery Center 2032 33,221

Springfield Mall Springfield, PA Macy's 192,000 20,577 188,175 14,068 610,719Target 195,899

Springfield Town Center Springfield, VA Macy's 2025 252,245 JCPenney 209,144 178,772 308,155 78,496 1,373,877Target 180,841

Dick's Sporting Goods 2025 53,891Nordstrom Rack 2025 33,107Regal Cinemas 2029 49,788Saks OFF 5th 2026 29,438

The Mall at Prince Georges Hyattsville, MD JCPenney 2021 148,778 177,988 250,538 15,784 923,929Macy's 2023 195,655Target 2024 135,186

23

Pennsylvania Real Estate Investment TrustProperty Information as of March 31, 2020

Landlord Owned Anchors/Large Format Non Anchor Anchor Stores Not Owned

Non-anchoroccupied GLA

Properties Location TenantExpiration

Year GLA Tenant GLALarge

FormatSmallShop Vacant

TotalGLA

Valley Mall Hagerstown, MD JCPenney 2024 157,455 95,023 238,219 10,102 855,173Belk 2028 123,094Regal Cinemas 2029 53,059Dick's Sporting Goods 2031 60,380Onelife Fitness 2033 70,000Tilt Studio 2028 47,841

Viewmont Mall Scranton, PA JCPenney 2025 193,112 Macy's 139,801 65,843 161,795 16,098 689,226Dick's Sporting Goods/Field &Stream 2028 90,000HomeGoods 2027 22,577

Willow Grove Park Willow Grove, PA Macy's 2022 225,000 Bloomingdale's 237,537 129,219 258,801 19,727 1,086,200

Nordstrom Rack 2022 40,332 Sears(2) 175,584Woodland Mall Grand Rapids, MI Von Maur 2119 86,165 JCPenney 254,905 162,636 271,876 22,194 955,092

Macy's 157,316Total Core Malls 4,495,311 3,385,924 2,922,634 3,891,021 857,811 15,552,701

Other Malls and Retail PropertiesExton Square Mall Exton, PA Boscov's 2024 178,000 Macy's 181,200 41,884 184,643 347,094 991,192

Round 1 2026 58,371Fashion District Philadelphia Philadelphia, PA Burlington 2032 85,162 104,548 141,696 234,014 823,648

Century 21 2026 95,157AMC 2034 36,535Round 1 2029 58,080City Winery 2037 29,762H&M 2030 38,694

Gloucester Premium Outlets Blackwood, NJ 37,303 264,488 66,358 368,149Metroplex Shopping Center Plymouth Meeting, PA Giant Food Store 2021 67,185 Lowe's 163,215 287,753 43,387 54,498 778,232

Target 137,514Saks OFF 5th 2026 24,680

The Court at Oxford Valley Fairless Hills, PA Best Buy 2021 59,620BJ's WholesaleClub 116,872 249,597 54,141 44,164 704,526The Home Depot 130,751

Dick's Sporting Goods 2021 49,381Valley View Mall (3) La Crosse, WI JCPenney 2025 96,357 41,667 129,764 250,785 518,573

Valley View Center La Crosse, WI 15,272 60,272Dick's Sporting Goods 2025 45,000

Red Rose Commons Lancaster, PA The Home Depot 134,558 248,086 15,207 - 462,883Weis Market 65,032

Total Other Malls and Retail Properties 639,852 929,142 1,292,970 848,598 996,913 4,707,475Total Portfolio 5,135,163 4,315,066 4,215,604 4,739,619 1,854,724 20,260,176

(1) Vacant GLA includes 121,200 square feet from former Lord & Taylor store which closed in the first quarter of 2020.

(2) Approximately 69,000 square feet of this space has been subleased to Primark.

(3) Vacant GLA includes 100,000 square feet from former Herberger's store which closed in the third quarter of 2018.

24

Pennsylvania Real Estate Investment TrustInvestment in Real Estate - Consolidated Properties

(in thousands)

March 31, 2020Operating

Properties andLand Held forDevelopment

Construction inProgress

AccumulatedDepreciation Net Real Estate Debt(1)

Core MallsCapital City Mall $ 134,937 $ 1,897 $ 52,636 $ 84,198 $ -Cherry Hill Mall 479,715 3,683 265,110 218,288 268,753Cumberland Mall 84,014 - 31,990 52,024 42,247Dartmouth Mall 87,211 3,339 45,180 45,370 58,288Francis Scott Key Mall 98,078 - 43,926 54,152 68,469Jacksonville Mall 93,566 - 40,918 52,648 -Magnolia Mall 107,165 2 50,282 56,885 -Moorestown Mall 184,680 3,243 74,752 113,171 -Patrick Henry Mall 156,553 - 74,259 82,294 88,910Plymouth Meeting Mall 229,106 9,626 101,844 136,888 -The Mall at Prince Georges 143,485 1,872 65,467 79,890 -Springfield Town Center 496,292 - 71,011 425,281 -Valley Mall 145,547 2,290 49,424 98,413 -Viewmont Mall 121,750 - 50,785 70,965 67,185Willow Grove Park 232,911 32,650 107,306 158,255 156,444Woodland Mall 260,118 22,883 80,814 202,187 123,840Total Core Malls 3,055,128 81,485 1,205,704 1,930,909 874,136

Non-Core MallsExton Square Mall 48,974 - 11,868 37,106 -Valley View Mall 36,191 - 13,085 23,106 27,429Total Non-Core Malls 85,165 - 24,953 60,212 27,429

Total Malls $ 3,140,293 $ 81,485 $ 1,230,657 $ 1,991,121 $ 901,565Other PropertiesLand held for development 5,881 - - 5,881 -Total Other Properties $ 5,881 $ - $ - $ 5,881 $ -Total Investment in Real Estate $ 3,146,174 $ 81,485 $ 1,230,657 $ 1,997,002 $ 901,565

Outparcels/land parcels held for saleJacksonville Mall 725 - 446 279 -Magnolia Mall 1,409 - 653 756 -Moorestown Mall 434 - - 434 -Valley Mall 3,959 - 1,366 2,593 -Woodland Mall 1,116 - - 1,116 -Total held for sale $ 7,643 $ - $ 2,465 $ 5,178 $ -

(1) Refer to page 31 for further debt information.

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Pennsylvania Real Estate Investment TrustInvestment in Real Estate – Equity Method Investments at Ownership Share

(in thousands)

March 31, 2020Operating

Properties andLand Held forDevelopment

Construction inProgress

AccumulatedDepreciation Net Real Estate Debt(2)

Unconsolidated MallsFashion District Philadelphia(1) $ 223,544 $ 109,982 $ (12,278) $ 321,248 $ 150,500Lehigh Valley Mall 49,513 5,836 (28,833) 26,516 96,400Springfield Mall 58,727 60 (24,383) 34,404 30,226Total Unconsolidated Malls $ 331,784 $ 115,878 $ (65,494) $ 382,168 $ 277,126

Unconsolidated Other Retail PropertiesGloucester Premium Outlets 27,497 585 (4,946) 23,136 21,500Metroplex Shopping Center 43,031 282 (26,168) 17,145 37,404The Court at Oxford Valley 29,138 5 (13,527) 15,616 26,647Red Rose Commons 14,216 8 (4,394) 9,830 12,858Total Unconsolidated Other Retail Properties $ 113,882 $ 880 $ (49,035) $ 65,727 $ 98,409Unconsolidated Property Under DevelopmentPavilion at Market East 6,346 793 (2,394) 4,745 3,109Total Investment in Real Estate $ 452,012 $ 117,551 $ (116,923) $ 452,640 $ 378,644(1) CIP includes $34.7 million of existing building shell that was reclassified from operating properties.(2) Refer to page 31 for further debt information.

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Pennsylvania Real Estate Investment TrustAnchor Replacement Summary

March 31, 2020

Property Former AnchorsGLA

(in '000's) Date ClosedDecommission

Date Replacement Tenant(s)GLA

(in '000's)Actual/TargetedOccupancy Date

Completed:Dartmouth Mall Sears 108 Q3 19 Q3 19 Burlington 44 Q1 20Moorestown Mall Macy's 200 Q1 17 Q2 17 HomeSense 28 Q3 18

Five Below 9 Q4 18Sierra Trading Post 19 Q1 19Michael's 25 Q1 20

Valley Mall Macy's 120 Q1 16 Q4 17 Tilt Studio 48 Q3 18One Life Fitness 70 Q3 18

Bon-Ton 123 Q1 18 Q1 18 Belk 123 Q4 18Sears 72 Q3 17 Q2 18 Dick's Sporting Goods 57 Q1 20

Plymouth Meeting Mall Macy's(1) 215 Q1 17 Q2 17 Burlington 42 Q3 19Dick's Sporting Goods 58 Q3 19Miller's Ale House 8 Q3 19Edge Fitness 38 Q4 19Michael's 26 Q1 20

Willow Grove Park JC Penney 125 Q3 17 Q1 18 Yard House 8 Q4 19In Progress:Willow Grove Park JC Penney See above Studio Movie Grill 49 (2)

(1) Property is subject to a ground lease.(2) Timing of occupancy has not yet been determined due to uncertainty around duration of buildout due to COVID-19 restrictions on construction.

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Pennsylvania Real Estate Investment TrustProperty Redevelopment Table as of March 31, 2020

Name Of Project and Location Total Project CostPREIT's

Investment ToDate

TargetedReturn On

IncrementalInvestment

ConstructionStart Date

ExpectedConstructionCompletion

ExpectedStabilization Year

PercentageLeased OrNegotiating

Anchor replacements:Dartmouth MallDartmouth, MA $12-13 $12.2 4.0-8.0% (1) 2019 2020 2022 49%Includes Burlington as lead replacement for Sears as well as several outparcel opportunities.

Valley MallHagerstown, MD $23-24 $19.1 6.5-7.0% 2019 2020 2021 68%Include Dick's Sporting Goods as replacement for Sears as well as other tenant opportunities.

Willow Grove Park MallWillow Grove, PA $27-28 $36.3 (2) 7.5-8.0% 2018 2020 2022 52%Addition of Studio Movie Grill, offering movies and in-theater dining, with other dining and entertainment tenants planned in former JC Penney box.

(1) High end of targeted return on incremental investment includes revenues from additional inline stores and outparcel opportunities. Additional capital expenditures will be required to achieve these returns.(2) Includes $13.7 million of investments in real estate from the former JC Penney box.

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Pennsylvania Real Estate Investment TrustCapital Expenditures

Three Months Ended March 31, 2020(in thousands)

Three Months Ended March 31, 2020

Consolidated

PREIT's Shareof EquityMethod

Investments TotalRedevelopment projects with incremental GLA and/or anchor replacement (1) $ 14,924 $ 10,766 $ 25,690Tenant allowances 1,017 - 1,017Recurring capital expenditures:

CAM expenditures 947 9 956Non-CAM expenditures 61 17 78

Total recurring capital expenditures 1,008 26 1,034Total $ 16,949 $ 10,792 $ 27,741

(1) Net of any tenant reimbursements, parcel sales, tax credits or other incentives.

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Pennsylvania Real Estate Investment TrustDebt Analysis as of March 31, 2020

(in thousands)

Outstanding Debt

Fixed Rate (1)% of Total

Indebtedness Variable Rate% of Total

Indebtedness Total% of Total

IndebtednessConsolidated mortgage loans payable (2) $ 884,236 41.8% $ 13,854 0.7% $ 898,090 42.5%

Unconsolidated mortgage loans payable (3) $ 202,471 9.6% $ 24,584 1.1% 227,055 10.7%

Consolidated Term Loans (4) 550,000 26.0% - 0.0% 550,000 26.0%

Unconsolidated Term Loan (5) - 0.0% 150,500 7.1% 150,500 7.1%

2018 Revolving Facility - 0.0% 289,000 13.7% 289,000 13.7%

Total Outstanding Debt $ 1,636,707 77.4% $ 477,938 22.6% $ 2,114,645 100.0%

Average Stated Interest Rate 4.15% 3.23% 3.90%

(1) Includes variable rate debt swapped to fixed rate debt.(2) Excludes deferred financing costs of $1,595.(3) Reflects our share of mortgage debt of equity method investees. Excludes our share of deferred financing costs of $695.(4) Excludes deferred financing costs of $1,784.(5) Reflects our share of Term Loan debt of equity method investee. Excludes our share of deferred financing costs of $1,560.

Average Debt Balance

Mortgage Debt Revolving Facility Term Loans Total

Beginning Balance 12/31/2019 $ 1,129,708 $ 255,000 $ 700,500 $ 2,085,208

2018 Revolving Facility Borrowing 1/31/2020 - 5,000 - 5,000

2018 Revolving Facility Borrowing 2/26/2020 - 7,000 - 7,000

2018 Revolving Facility Borrowing 3/13/2020 - 22,000 - 22,000Mortgage loan amortization, including our share ofdebt of equity method investees 3/31/2020 (4,563) - - (4,563)

Ending Balance 3/31/2020 $ 1,125,145 $ 289,000 $ 700,500 $ 2,114,645

Weighted Average Balance $ 1,128,455 $ 265,264 $ 700,500 $ 2,094,219

(continued on next page)

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Pennsylvania Real Estate Investment TrustDebt Analysis as of March 31, 2020

(in thousands)

Debt Maturities(1)

YearScheduled

Amortization

DeferredFinancing CostAmortization -

Mortgages

MortgageBalanceat Initial

Maturity Date2018 Revolving

Facility Term Loans

DeferredFinancing CostAmortization -

Term Loans Total Debt2020 $ 16,080 $ (764) $ 27,161 $ - $ - $ (870) $ 41,607

2021 21,910 (625) 229,955 - 250,000 (1,137) 500,103

2022 17,201 (301) 377,489 289,000 - (726) 682,663

2023 10,204 (195) 86,801 - 450,500 (209) 547,101

2024 9,291 (185) - - - (75) 9,031

Thereafter 11,619 (220) 317,434 - - (325) 328,508

$ 86,305 $ (2,290) $ 1,038,840 $ 289,000 $ 700,500 $ (3,344) $ 2,109,011

(1) The weighted average period to total debt maturity is 2.85 years, excluding extension options. Includes 100% of revolver, term loan and mortgage loan debt from consolidated properties and our share ofterm loan and mortgage loan debt of equity method investees.

Weighted Average Mortgage Interest RatesYear Balance (1) Interest Rate

2020 $ 27,319 5.95%

2021 232,976 3.64%

2022 399,621 4.10%

2023 95,202 4.37%

2024 - -

Thereafter 370,028 4.08%

Total $ 1,125,145 4.07%

(1) Includes our share of debt of equity method investees.

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Pennsylvania Real Estate Investment TrustDebt Schedule as of March 31, 2020

(in thousands)

Debt Interest RateAnnual

Debt ServiceBalance atMaturity

InitialMaturity Date

Fully ExtendedMaturity Date

Fixed Rate Mortgage LoansValley View Mall $ 27,319 5.95% $ 2,290 $ 27,161 July 2020 July 2020Viewmont Mall (1) 57,000 3.73% 2,126 - March 2021 March 2021Woodland Mall (1) 123,420 3.02% 5,401 121,600 April 2021 April 2021Red Rose Commons (2) 12,780 5.14% 978 12,379 July 2021 July 2021The Court at Oxford Valley (2) 26,506 5.56% 2,058 25,782 July 2021 July 2021Cumberland Mall 41,984 4.40% 3,433 38,157 August 2022 August 2022Cherry Hill Mall 267,668 3.90% 16,980 251,120 September 2022 September 2022Francis Scott Key Mall (1) 64,800 5.01% 3,244 - January 2022 January 2023Dartmouth Mall 58,036 3.97% 3,825 53,299 April 2023 April 2023Metroplex Shopping Center (2) 37,166 5.00% 2,818 33,502 October 2023 October 2023Patrick Henry Mall 88,449 4.35% 5,748 77,591 July 2025 July 2025Springfield Mall (2) 30,074 4.45% 1,964 26,299 October 2025 October 2025Willow Grove Park 155,560 3.88% 9,599 133,754 October 2025 October 2025Lehigh Valley Mall (2) 95,945 4.06% 5,768 79,789 November 2027 November 2027Total Fixed Rate Mortgage Loans $ 1,086,707 4.09% $ 66,245 $ 880,433

Variable Rate Mortgage LoansPavilion East Associates (2) $ 3,084 3.73% $ 215 $ 3,009 February 2021 February 2021Viewmont Mall 10,185 3.93% 398 67,185 March 2021 March 2021Gloucester Premium Outlets (2) 21,500 3.08% 663 21,500 March 2022 March 2023Francis Scott Key Mall 3,669 4.18% 153 66,712 January 2022 January 2023Total Variable Rate Mortgage Loans $ 38,438 3.46% $ 1,429 $ 158,406Total Mortgage Loans $ 1,125,145 4.07% $ 67,674 $ 1,038,839

Consolidated Mortgage Loans $ 898,090 3.98% $ 53,197 $ 836,579Consolidated Deferred Financing Fees (1,595) n/a n/a n/aUnconsolidated Mortgage Loans 227,055 4.40% 14,464 202,260Unconsolidated Deferred Financing Fees (2) (695) n/a n/a n/a2014 7 Year Term Loan (1) 250,000 4.07% 10,008 250,000 December 2021 December 20212018 5 Year Term Loan (1) 300,000 4.44% 13,327 300,000 May 2023 May 2023Unconsolidated Term Loan 150,500 3.58% 5,390 150,500 January 2023 January 2023Term Loan Deferred Financing Fees (3,344) n/a n/a n/a2018 Revolving Facility 289,000 2.81% 8,126 289,000 May 2022 May 2023Total $ 2,109,011 3.90% $ 104,512 $ 2,028,339Amortization of Deferred Financing Fees — 0.00% — —Effective Interest Rate $ 2,109,011 3.90% $ 104,512 $ 2,028,339

(1) All or a portion of the loan has been effectively swapped to the fixed interest rate presented.(2) Includes our share of debt of equity method investees, based on our ownership percentage.

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Pennsylvania Real Estate Investment TrustSelected Debt Ratios (1)

March 31, 2020Consolidated Liabilities to Gross Asset Value 63.35%Ratio of Consolidated Liabilities to Gross Asset Value shall not exceed 65%Secured Indebtedness to Gross Asset Value 36.26%Secured Indebtedness to Gross Asset Value may not exceed 60%Adjusted EBITDA to Fixed Charges 1.49Adjusted EBITDA may not be less than 1.40 to 1.00Unencumbered Adjusted NOI to Unsecured Interest Expense 3.03Unencumbered Adjusted NOI to Unsecured Interest Expense may not be less than 1.75 to 1.00Unencumbered Debt Yield 10.78%Ratio of Unencumbered Adjusted NOI to Unsecured Debt may not be less than 10%

(1) The 2018 Revolving Facility Agreement, as amended, and 2018 Term Loan Agreement, as amended, each dated May 24, 2018, and the 7-Year 2014 Term Loan Agreement, as amended, dated June 5,2018 (collectively, the "Credit Facility Agreements"), contain identical affirmative and negative covenants customarily found in such agreements, including requirements that the Company, on aconsolidated basis, maintain certain financial ratios. All capitalized terms used on this page have the meanings ascribed to such terms in the Credit Facility Agreements. In addition to the ratios set forthherein, there are several other ratios set forth in the covenants under the Credit Facility Agreements with which the Company must comply, which are described in the Company’s quarterly report onForm 10-Q for the quarterly period ended June 30, 2018. The Credit Facility Agreements were amended on March 30, 2020, and the covenants and ratios, as amended, are described in the Company’scurrent report on Form 8-K filed March 31, 2020.

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Pennsylvania Real Estate Investment TrustForward Looking Statements

FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, together with other statements and information publiclydisseminated by us, contain certain forward-looking statements that can be identified by the use of words such as “anticipate,” “believe,”“estimate,” “expect,” “project,” “intend,” “may” or similar expressions. Forward-looking statements relate to expectations, beliefs,projections, future plans, strategies, anticipated events, trends and other matters, including our expectations regarding the impact of COVID-19 on our business, that are not historical facts. These forward-looking statements reflect our current views about future events,achievements, results, cost reductions, dividend payments and the impact of COVID-19 and are subject to risks, uncertainties and changes incircumstances that might cause future events, achievements or results to differ materially from those expressed or implied by the forward-looking statements. In particular, our business might be materially and adversely affected by the following:

the COVID-19 global pandemic and the public health and governmental actions in response, which have and may continue toexacerbate many of the risks listed below;

our ability to implement plans and initiatives to adequately address the “going concern” considerations described in Note 1 to ourunaudited consolidated financial statements;

changes in the retail and real estate industries, including consolidation and store closings, particularly among anchor tenants;

current economic conditions and the corresponding effects on tenant business performance, prospects, solvency and leasingdecisions;

our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise;

our ability to maintain and increase property occupancy, sales and rental rates;

increases in operating costs that cannot be passed on to tenants;

the effects of online shopping and other uses of technology on our retail tenants;

risks related to our development and redevelopment activities, including delays, cost overruns and our inability to reach projectedoccupancy or rental rates;

acts of violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales;

our ability to sell properties that we seek to dispose of or our ability to obtain prices we seek;

potential losses on impairment of certain long-lived assets, such as real estate, including losses that we might be required to record inconnection with any disposition of assets;

our substantial debt and the liquidation preference of our preferred shares and our high leverage ratio and our ability to remain incompliance with our financial covenants under our debt facilities;

our ability to refinance our existing indebtedness when it matures, on favorable terms or at all;

our ability to satisfy our indebtedness if such indebtedness were to be accelerated due to breach of covenants or payment default, aswell as our ability to satisfy any other debt that was accelerated as a consequence;

our ability to raise capital, including through sales of properties or interests in properties and through the issuance of equity orequity-related securities if market conditions are favorable;

our ability to continue to pay dividends at current levels or at all; and

potential dilution from any capital raising transactions or other equity issuances.

Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by ourforward-looking statements include those discussed herein and in our Annual Report on Form 10-K for the year ended December 31, 2019 inthe section entitled “Item 1A. Risk Factors,” in our Current Report on Form 8-K filed on May 11, 2020 and in any subsequent reports we filewith the SEC. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.

34

Pennsylvania Real Estate Investment TrustDefinitions

Funds From Operations (FFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO, which is a non-GAAP measure commonly used by REITs, asnet income (computed in accordance with GAAP) excluding (i) depreciation and amortization related to real estate, (ii) gains and losses from thesale of certain real estate assets, (iii) gains and losses from change in control, and (iv) impairment write-downs of certain real estate assets andinvestments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Wecompute FFO in accordance with standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do notdefine the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than we do.NAREIT’s established guidance provides that excluding impairment write downs of depreciable real estate is consistent with the NAREITdefinition.

FFO is a commonly used measure of operating performance and profitability among REITs. We use FFO and FFO per diluted share and unit oflimited partnership interest in our operating partnership (“OP Unit”) and, when applicable, related measures such as Funds From Operations, asadjusted, in measuring our performance against our peers and as one of the performance measures for determining incentive compensation amountsearned under certain of our performance-based executive compensation programs.

FFO does not include gains and losses on sales of operating real estate assets or impairment write downs of depreciable real estate, which areincluded in the determination of net income in accordance with GAAP. Accordingly, FFO is not a comprehensive measure of our operating cashflows. In addition, since FFO does not include depreciation on real estate assets, FFO may not be a useful performance measure when comparingour operating performance to that of other non-real estate commercial enterprises. We compensate for these limitations by using FFO inconjunction with other GAAP financial performance measures, such as net income and net cash provided by operating activities, and other non-GAAP financial performance measures, such as NOI. FFO does not represent cash generated from operating activities in accordance with GAAPand should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of our financialperformance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, noris it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net income is the mostdirectly comparable GAAP measurement to FFO.

When applicable, we also present Funds From Operations, as adjusted, and Funds From Operations per diluted share and OP Unit, as adjusted,which are non-GAAP measures, to show the effect of such items as gain or loss on debt extinguishment (including accelerated amortization offinancing costs), impairment of assets, provision for employee separation expense and insurance recoveries or losses, net, which can have asignificant effect on our results of operations, but are not, in our opinion, indicative of our operating performance. We also present FFO on afurther adjusted basis to isolate the impact on FFO caused by property dispositions.

We believe that FFO is helpful to management and investors as a measure of operating performance because it excludes various items included innet income that do not relate to or are not indicative of operating performance, such as gains on sales of operating real estate and depreciation andamortization of real estate, among others. We believe that Funds From Operations, as adjusted, is helpful to management and investors as ameasure of operating performance because it adjusts FFO to exclude items that management does not believe are indicative of our operatingperformance, such as provision for employee separation expense and accelerated amortization of financing costs.

Net Operating Income (NOI)

NOI (a non-GAAP measure) is derived from real estate revenue (determined in accordance with GAAP, including lease termination revenue),minus property operating expenses (determined in accordance with GAAP), plus our pro rata share of revenue and property operating expenses ofour unconsolidated partnership investments. NOI excludes other income, general and administrative expenses, insurance recoveries, employeeseparation expenses, interest expense, depreciation and amortization, impairment of assets, gains/ adjustment to gains on sale of interest in nonoperating real estate, gain on sales of interest in real estate by equity method investee, gains/ losses on sales of interests in real estate, net, gain orloss on debt extinguishment, and project costs and other expenses. We believe that net income is the most directly comparable GAAP measure toNOI.

We believe that NOI is helpful to management and investors as a measure of operating performance because it is an indicator of the return onproperty investment and provides a method of comparing property performance over time. We use NOI and related terms, like Same Store NOI,as performance measures for determining incentive compensation amounts under certain of our performance-based incentive compensationprograms.

Same Store NOI

Same Store NOI is calculated using retail properties owned for the full periods presented and excludes properties acquired, disposed, underredevelopment or designated as non-core during the periods presented. In 2018, Wyoming Valley Mall was designated as non-core andsubsequently conveyed to the lender in September 2019. In 2019, Exton Square and Valley View Malls, as well as power centers and GloucesterPremium Outlets, were designated as non-core and will be excluded from Same Store NOI. Non Same Store NOI is calculated using the retailproperties excluded from the calculation of Same Store NOI.

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Funds Available for Distribution (FAD)

FAD is a measure of a real estate company’s cash flows generated by operations and capacity to pay dividends. The Company calculates FAD bystarting with FFO as adjusted and subtracting (1) straight-line rent, (2) normalized recurring capital expenditures that are capitalized but necessaryto maintain our properties, (3) operational tenant allowances, (4) capitalized leasing costs, (5) non-cash compensation charges, and (6) amortizationof above- and below-market lease intangibles.

We believe that net income is the most directly comparable GAAP measurement to FAD. We believe FAD provides a meaningful indicator of ourability to fund cash needs and to make cash distributions to equity owners. In addition, we believe that to further understand our liquidity, FADshould be compared with our cash flow from operating activities determined in accordance with GAAP, as presented in our consolidated financialstatements. The computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not representcash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income(determined in accordance with GAAP) as an indication of our performance, or as an alternative to net cash flow from operating activities(determined in accordance with GAAP), as a measure of our liquidity.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)

NAREIT defines Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”), which is a non-GAAP measure,as net income (computed in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization; plus or minuslosses and gains on the disposition of depreciated property, including losses/ gains on change in control; plus impairment write downs ofdepreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; plus orminus adjustments to reflect the entity’s share of EBITDAre of unconsolidated affiliates. We compute EBITDAre in accordance with the standardsestablished by NAREIT, which may not be comparable to EBITDAre reported by other REITs that do not define the term in accordance with thecurrent NAREIT definition, or that interpret the current NAREIT definition differently than we do.

EBITDAre does not include interest expense, income tax expense, gains or losses on sales of operating real estate or impairment writedowns ofdepreciable real estate, which are included in the determination of net income in accordance with GAAP. Accordingly, EBITDAre is not acomprehensive measure of our operating cash flows. EBITDAre does not represent cash generated from operating activities in accordance withGAAP and should not be considered to be an alternative to net income (determined in accordance with GAAP) as an indication of our financialperformance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, noris it indicative of funds available for our cash needs, including our ability to make cash distributions. We believe that net income is the mostdirectly comparable GAAP measurement to EBITDAre.

We believe that EBITDAre is helpful to management and investors as a measure of operating performance because it provides an additionalperformance measure to management and investors to facilitate the evaluation and comparison of the Company to other REITs and to other non-real estate commercial enterprises.

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